4.1 VfM can be defined as "the optimum combination of whole life costs and quality (or fitness for purpose) of the good or service to meet the user's requirements. VfM is not the choice of goods or services based on the lowest cost." VfM will therefore be achieved by finding the optimal balance between benefits and costs taken over the long term.
4.2 The VfM assessment and appraisal methodology advocated for JVs is to follow a business case approach. This involves a staged process where, to increasing levels of certainty, compelling and coherent cases are made for the proposed action. This process should be in accordance with existing guidance and policy, such as the Green Book36, the 5 Case Model37 and OGC's Policy and Standards Framework.38
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36 HM Treasury Green Book, (www.hm-treasury.gov.uk/d/1(4).pdf).
37 Public Sector Business Cases using the Five Case Model, (www.hm-treasury.gov.uk/d/1(3).pdf and www.hm-treasury.gov.uk/d/2(3).pdf).
38 OGC Policy and Standards Framework (www.ogc.gov.uk/procurement_-_the_bigger_picture_policy_and_standards_framework.asp)